MOTORCYCLING NSW LIMITED GENERAL MEETING
CONDUCTED ON LINE WITH WEBEX
The online meeting started at 7.05pm with Life Member Keith Davies as host.
Other directors present: B McGlinchy, K Beck.
There appeared to be at least 30 participants including Peter Goddard and Peter Doyle from MA.
The conduct of the meeting was ably assisted by Lauren Werrin from the MNSW office.
(Since the last newsletter, all of the former MNSW board have resigned. Kate Beck was appointed as a director at the board meeting on 26th May. Life Members Keith Davies and Bob McGlinchy were invited to join the MNSW board as appointed directors by former President Tim Sanford before most of the old board resigned. The date of their appointment is unclear, as there have been no board minutes since 8 June. Keith and Bob were required to maintain a quorum on the board. The three appointed directors are presently running the company until a new board is elected).
This meeting had me completely confused. The meeting agenda originally listed for 12 August was the continuance of the Annual General Meeting, followed by the State Delegates Meeting.
A later agenda received described the 12th August meeting as a General Meeting. The agenda stated the meeting was called to restore the member's confidence in the board. It also included 8 motions for consideration. These were each discussed during the meeting. When the meeting started the members of the board were introduced and then preceded directly to the motions. The minutes of previous meetings were not read, nor were there any of the usual sports committee reports or financial report.
Motion 1.1: To confirm current directors Kate Beck, Robert McGlinchy and Keith Davies as the interim board of MNSW.
Results: In favour: 23, opposed: 0.
Motion 1.2: To cancel all current election ballots being conducted by the previous MNSW board. Results: in favour: 24, opposed: 0.
Motion 1.3: To request that the MA Federation Nominations Committee conduct a recruitment process for candidates for all 5 elected MNSW directorships, to rate candidates and deliver to the MNSW board, (and) to publish to the MNSW membership a short list of qualified candidates. Results: in favour 25, opposed: 1.
Motion 1.4: That each of the 5 elected directorships (shall) be specified as, respectively, 1, 2, and 3 year terms to facilitate the staggered rotation provisions of the constitution.
Results: in favour: 23, opposed, 0.
Motion1.5: That the interim MNSW board be authorised to conduct an election ballot on the basis of the (MA) Nominations Committee's short list, noting that the short list is a recommendation only, and that other candidates may nominate for election. Results: in favour: 23, opposed: 0.
Motion 1.6: That the remaining director and the newly elected 5 directors then may make 1 appointment to the board from the Nominations Committee's short list.
Results: This motion was withdrawn.
Motion 1.7: That the member's motion dated 27th May to dismiss the MNSW board be dismissed as it will have become redundant.
Results: in favour: 27, opposed: 0.
Motion 1.8: That the 2021 MNSW AGM be declared closed.
Results: in favour: 27, opposed: 0. All these motions were hotly debated by various members, as well as receiving advice from the MA representatives.
No report was presented, nor was it supplied with the agenda.
There were complaints that previous financial reports were unreliable, if not deliberately misleading. Some income figures did not distinguish between grants from government and from company funds. Some figures were shown on a cash basis, while others were shown on an accrual basis.
RACE PACE Vs MNSW COURT CASE: A hearing date for the Supreme Court case brought by former MNSW director Michel Constantinou against MNSW has had the dates 22nd to 26th November listed.
A motion to allow for Email voting for MNSW elections was requested. There was quite a strong support for this motion, as many country clubs have difficulty with mail deliveries.
The motion was deferred, as it would require a change to the constitution.
Former CEO Dave Cooke (representing Nowra club) moved that an investigation into the former MNSW board be held, claiming that the company had been operating contrary to the constitution, had deliberately lied to members at the AGM, had lost over $500,000, and suggested that there may be criminal offences.
The motion was seconded by D. Morrisey, and supported by Peter Goddard and former director Michel Constantinou.
Result: in favour: 21, opposed: 2.
A delegate asked if competition licences would be extended for the period of the Covid 19 lockdown, when riders are unable to compete.
Keith replied that they were consulting with MA, and also considering other financial assistance to clubs.
A delegate moved that the on line meetings be continued after the Covid lockdown is over, possibly alternating with face to face meetings. They would also like to have all delegates able to join the on line meetings.
Results: in favour: 18, opposed: 3.
Meeting closed: 9.25.
I'm not sure what to think of the current situation. There are all sorts of allegations circulating of mismanagement by the former board, from criminal activities to jobs for the boys, selling assets without getting tenders, misleading financial reports, hiring and firing staff, contracting out services, etc. My opinion is that the criminal activities are unlikely. I think that it is more likely the board became overwhelmed by the problems which arose when the Covid crisis started in 2020 and it started taking short cuts. The board needed to stop the haemorrhaging of cash in view of the long term expectation of the Covid restrictions.
Some of their actions, such as making the position of CEO redundant were, I believe, misguided. It may have saved money in the short term, but has caused ongoing problems since. A better alternative would have been to appoint a voluntary CEO, or even a part time position.
But some of the board decisions certainly saved many clubs from financial problems with the waiving of debts and allocating grants, as well as distributing government support. Later